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XYZ Co. stock sells for $42 and just a paid a dividend of $5.15. Dividends are expected to grow at a rate of 4% forever.

XYZ Co. stock sells for $42 and just a paid a dividend of $5.15. Dividends are expected to grow at a rate of 4% forever. What is the cost of common equity? A. 16.75 B. 10.70 C. 12.85 D. 9.46

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